Question: My client is considering selling her home in a few years (let's say 6 years from now when age 75) and we're projecting till age 90. How do we reflect a increase in her cash needs for the remaining 15 years of her life (75 to 90)....
Thursday, September 29, 2016
Tuesday, September 27, 2016
Viewing Detailed Cash Flows
Question: On the future assets table in the report, the registered assets at age 94 (year 2054) for the surviving client are $240,979. At that age the client is required to withdraw a minimum 20% which would be $48,200. The investment return is a net 5% or about...
Friday, September 23, 2016
RRIF Withdrawals
Question: How do I delay RRIF withdrawals to age 71 in the program? Answer: On the Options page, select "Start Withdrawals of Registered Investments" and the program will defer the RRIF withdrawals as long as possible. Please note that if funds are not sufficient to meet the retirement...
Wednesday, September 21, 2016
Future Income Tax
Question: I ran the model and the level of income taxes seem low for the amount of income each year in the future. With a gross incomes of around $80,000, it shows about $10,000 in taxes for example. Answer: Income taxes may seem low but remember these are...
Monday, September 19, 2016
Expected Investment Income
Question: How are investment income calculated for the projection? Answer: Registered funds are projected in the future based on the rates selected in the Economic Forecast on the Forecast page, and the asset allocation selected on the Options page. If you base your projection on the current asset...
Thursday, September 15, 2016
RRIF Withdrawals Based on Younger Spouse's Age
Question: Is it possible to use my spouse's DOB for my RRIF payments? Also, can I control how much income comes from a RRIF, subject to the minimum? Finally, how can I see the annual RRIF income coming out of my plan? Answer: You can use the spouse's...
Tuesday, September 13, 2016
Tax Brackets and Marginal Tax
Question: How do you determine the tax bracket/marginal tax many years in the future? Answer: The program assumes brackets, credits and other amounts will grow each year by the rate of inflation. Most provinces automatically index these amounts each year. We assume brackets are indexed for provinces who...
Thursday, September 8, 2016
Spending Projections in Retirement
Question: When doing long term income projections, is it possible to drop spending by say 25% at age 75 and then continue adjusting that revised spending by inflation rather than having spending continue along the same rate? Answer: Yes, go to the 'Forecast' page and on the 'Retirement...
Tuesday, September 6, 2016
RRSP Savings and Pension Adjustment
Question: Why are allowable RRSP contributions so low if the earnings are high enough to contribute the maximum amount? Answer: Low RRSP contributions for persons earning substantial money. may occur if there is an ongoing defined benefit pension plan. Note that you entered a defined benefit pension for...
Thursday, September 1, 2016
Income Coverage
Question: Can you explain the concept of "income coverage" in the risk analysis results? Answer: For the income coverage, it is defined as lifetime sources of income over total average income. It is a useful measure for lower wealth individuals that require the peace of mind of knowing...
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